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Touchstone Exploration expects ‘no impact’ from Petrotrin’s decision to shut Trinidad crude refinery

"We believe this is a difficult but necessary step for Petrotrin, and we look forward to working with them as a partner while they transition the business and return to profitability,” said Paul Baay

oil and gas operations
Trinidad's national oil firm will now export crude instead of refining on the island

Touchstone Exploration Inc (LON:TXP, TSE:TXP) told investors that it expects no impact to its crude sales as a result of proposed changes at Petrotrin (Petroleum Company of Trinidad and Tobago Limited).

In October, it is planned that Petrotrin will phase out refinery operations in Trinidad and instead will export crude into the international oil market.

Touchstone, in a stock market statement, said the changes will have no impact on its current or future arrangements as it does not interact directly with the refinery, and it anticipates that it will continue to sell crude to Petrotrin. The company said it presumes that Petrotrin will export at world pricing rather than sell into the Pointe-a-Pierre refinery.

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"We believe this is a difficult but necessary step for Petrotrin, and we look forward to working with them as a partner while they transition the business and return to profitability,” said Paul Baay, Touchstone chief executive.

Touchstone added that, in its view, Petrotrin’s decisions will benefit the country in the long-term.

Sustainable profitability of the state-owned company will enhance the standard of living in Trinidad and ensure the continued viability of the oil and gas-based economy on the island, it noted.

It also said that the Petrotrin restructuring could impact skilled workers within the organisation, and it is hopeful that as Touchstone accelerates its development activity it may find opportunities for qualified personnel.

The company clarified that Petrotrin is due to meet with all stakeholders in the coming weeks to discuss the changes, their impacts and their implementation. Touchstone expects to be an active participant during these scheduled meetings.

Quick facts: Touchstone Exploration Inc

Price: 59 GBX

AIM:TXP
Market: AIM
Market Cap: £108.26 m
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